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Jun 30, 2024
Forestar Q3 2024 Earnings Report
Forestar reported a decrease in net income and revenue, but maintained a strong pre-tax profit margin and increased its lot position.
Key Takeaways
Forestar's Q3 2024 results showed a decrease in net income and revenue compared to the same quarter last year. However, the company maintained a strong pre-tax profit margin and significantly increased its owned and controlled lot position. The company now expects to deliver between 14,600 and 15,100 lots and generate $1.4 billion to $1.5 billion in revenue for fiscal year 2024.
Net income decreased 17% to $38.7 million, or $0.76 per diluted share.
Revenues decreased 14% to $318.4 million on 3,255 lots sold.
Pre-tax income decreased 17% to $51.6 million, with a pre-tax profit margin of 16.2%.
Owned and controlled lots increased 40% to 102,100 lots.
Forestar
Forestar
Forestar Revenue by Segment
Revenue by Segment
Residential Lot Sales Revenue
CapyFin.comTract Sales and Other Revenue
CapyFin.com Forward Guidance
Forestar now expects to deliver between 14,600 and 15,100 lots and generate $1.4 billion to $1.5 billion in revenue for fiscal year 2024.
Positive Outlook
- Demand for finished lots remained solid.
- Supply of vacant developed lots continues to be constrained.
- Forestar is uniquely positioned to take advantage of the shortage of finished lots.
- Contracted backlog is strong.
- Balance sheet and liquidity are ample.
Challenges Ahead
- Cyclical nature of the homebuilding and lot development industries
- Changes in economic, real estate and other conditions
- Impact of significant inflation, higher interest rates or deflation
- Supply shortages and other risks of acquiring land, construction materials and skilled labor
- Impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies
Revenue & Expenses
Visualization of income flow from segment revenue to net income